Latest news with #BYDDY
Yahoo
28-05-2025
- Automotive
- Yahoo
China's EV Market Faces Brutal Test After BYD's Aggressive Price Cuts
The world's largest auto market is in trouble, and it's taking some of its noted electric vehicle (EV) makers down with it. Shares of Chinese EV companies took a sharp hit recently, rattled by growing fears of a deepening price war and rising regulatory concerns. BYD Co Ltd. BYDDY plunged more than 9% yesterday to close at $107.33, while NIO Inc. NIO, XPeng XPEV, and Li Auto LI also ended the day in the red, down 3.4%, 3.3%, and 2.3%, respectively. This didn't seem like just another bad day—it looked like a sign of bigger trouble ahead. At the center of the storm is BYD, China's EV juggernaut. On the surface, its latest move looks like a gift to consumers—price cuts on 22 electric and plug-in hybrid models until the end of June. Its budget-friendly Seagull hatchback now starts at just 55,800 yuan (about $7,765), and the sleek Seal dual-motor hybrid sedan saw its price slashed by a whopping 34%, now starting at 102,800 yuan. Earlier this year, BYD rolled out cheaper versions of its Han sedans and Tang SUVs, trimming prices by over 10%. BYDDY carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. But this aggressive pricing strategy comes at a cost. With razor-thin margins and intensifying competition, China's EV industry is caught between growth and profitability. BYD's price cuts might boost volumes, but they'll undoubtedly squeeze profit margins. And that's not just for itself; the price war will likely erode margins for every other player trying to stay in the race. Li Auto saw its vehicle margin slip from 22.7% in the fourth quarter of 2023 to 19.7% in the fourth quarter of 2024. That's a red flag in a market where efficiency and pricing power are key to survival. NIO, on the other hand, has worked to improve its vehicle margins and even set a goal of hitting 20% for its namesake brand this year. But with BYD dragging prices down across the board and others likely to follow suit, that target suddenly looks overly ambitious. Then there's XPeng. While it managed to nudge its vehicle margin up from 10% in the fourth quarter of 2024 to 10.5% in the first quarter of 2025, the sustainability of that progress is questionable. XPeng, like NIO, still isn't profitable, and every yuan shaved off car prices pushes breakeven further out of reach. NIO has publicly aimed to reach profitability by the end of 2025, but with this stiff pricing competition, that goal gets murkier. Retail discount levels remained elevated in the January-March 2025 period, and all signs point to a prolonged price war. The latest price cuts from BYD are likely to erode the market share of smaller and weaker competitors—unless they respond in kind, which would only deepen their losses. It's a vicious cycle that will test the resilience of the entire sector. Pressure is increasing on the supply chain too. Wei Jianjun, chairman of Great Wall Motor, didn't mince words last week. He compared the auto industry's current state to China's property crisis, suggesting that EV makers are pushing suppliers to the brink by demanding lower costs and delaying payments. The promise of China's EV boom lured in a wave of startups over the past decade. But many are now stuck in a price war that's undercutting profitability. NIO, XPeng and Li Auto all carved out niches with advanced tech and smart driving features, but even those are now being bundled into base models at no extra cost. The premium edge is fading fast. And it's not just market dynamics causing headaches. China's state planner recently issued a warning about excessive competition in some sectors, flagging concerns about companies selling cars below cost and undermining fair competition. BYD's latest round of cuts could well be the tipping point. It's forcing NIO, Li Auto, and XPeng into a dangerous game of catch-up. If margins continue to shrink and losses pile up, we could see an industry shakeout sooner than later. As earnings from Li Auto and NIO roll in over the coming days—following XPeng's already-released first-quarter numbers—the market will be watching closely. One thing is clear—China's EV market is entering a challenging new phase. Growth opportunities remain, but navigating pricing pressure will be critical. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIO Inc. (NIO) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
26-05-2025
- Automotive
- Yahoo
BYD's EV Sales in Europe Surpass Tesla for the First Time
BYD Company Limited BYDDY surpassed Tesla, Inc. TSLA in electric vehicle (EV) sales in Europe for the first time in April, overtaking the long-time market leader in the region. Per Jato Dynamics, BYD registered 7,231 new battery-electric vehicles (BEVs) last month, up 169% from the same time last year, earning it a spot among the top 10 EV brands in Europe. Tesla registered a drop of 49%, placing it one spot sales continued to drop even after Europe's EV market continued to expand. The overall registrations rose 28% industrywide in April. Volkswagen's EV sales rose 61%, while its subsidiary Skoda more than tripled its electric car lead over Tesla was even more pronounced when plug-in hybrid sales were factored in. The Chinese automaker's total sales in Europe surged 359% year over year in BYD and other Chinese brands had focused solely on fully electric cars in Europe to meet the region's ambitious targets to minimize tailpipe emissions and transition the industry away from internal combustion engines. However, that strategy shifted after the European Union raised tariffs on Chinese EVs last year, after concluding that substantial government support from Beijing had given Chinese companies an unfair competitive edge. BYD and its Chinese peers have started selling more plug-in hybrids in plans to expand its European EV offerings with the Dolphin Surf, an affordable electric hatchback, priced under €23,000. The model standard version with a range of 220 kilometers will sell for €19,990 in Germany until the end of June, rising to €22,990 thereafter. A slightly larger version of its Seagull model, the Dolphin Surf includes high-end features like a rotating touchscreen, keyless entry and advanced cruise control. It's positioned to compete with models, such as Renault's R5 and Stellantis Citroën's ë-C3. BYDDY carries a Zacks Rank #3 (Hold) at better-ranked stocks in the auto space are Ferrari N.V. RACE and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for RACE's 2025 sales and earnings implies year-over-year growth of 12.37% and 4.8%, respectively. EPS estimates for 2025 and 2026 have improved 30 cents and 36 cents, respectively, in the past 30 Zacks Consensus Estimate for STRT's fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Strattec Security Corporation (STRT) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Automotive
- Yahoo
Well-Known Investor Buys TSLA Stock
Prominent investor Bill Baruch yesterday told CNBC that he had increased his stake in Tesla (TSLA). Baruch, the founder and president of Blue Line Futures, predicted that the performance of TSLA stock would improve in the second half of this year. Tesla, Inc. (TSLA): Among Most Popular Stocks on Robinhood in 2025 More About Baruch's Views on TSLA Stock Baruch decided to buy more TSLA stock because his exposure to it was relatively low, compared to the other names in his portfolio. Additionally, the investor was attracted to TSLA because he thinks that it is creating "a little bit of a base." He also believes that the shares can climb going forward because other large EV makers, such as China-based BYD (BYDDY), have managed to rise significantly in recent weeks. More About TSLA Analysts, on average, expect the EV maker's earnings per share to fall to $1.91 in 2025, versus the $2.42 of EPS that it generated in 2024. However, the mean estimate calls for its EPS to climb to $2.91 in 2026. In the last month, the shares have added 1%, while they have sunk 27% in the last three months. While we acknowledge the potential of TSLA, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: The author owns shares of BYDDY but has no intention of trading them in the next 48 hours. This article is originally published at Insider Monkey
Globe and Mail
10-04-2025
- Automotive
- Globe and Mail
An ‘Extended Tariff Scenario' Would Hurt Tesla and Help This 1 Key Electric Vehicle Rival
Tariffs are once again at the center of a growing economic storm, and this time, analysts are worried they will hurt the electric vehicle industry. President Donald Trump has now set an effective 125% tariff on Chinese imports, threatening to impact global supply chains and raising market uncertainty. Analysts warn that these tariffs, if in place for an 'extended' period, may disrupt supply chains, increase production costs, and significantly burden American automakers like Tesla (TSLA). Wedbush Securities analyst Dan Ives emphasizes that such tariffs threaten Tesla's profitability and could shift Chinese consumer preferences away from U.S. brands burdened by steep import costs. But where Tesla faces challenges, China's BYD (BYDDY) sees opportunity. With its vertically integrated production model and groundbreaking innovations like five-minute charging and a competitive price point, BYD is poised to benefit from tariffs that widen the cost gap between American and Chinese vehicles. Even without a U.S. presence, BYD's strategic advantages make it well-positioned for growth. Analysts are increasingly bullish on BYD, predicting that prolonged tariffs against China could speed up its global expansion, especially in Europe, Mexico, and South America. About BYD Stock BYD has become a global leader in electric vehicles and renewable energy solutions. BYDDY stock has delivered extraordinary returns in the past few years, rallying 63% over the past 52 weeks alone. BYD vs. Tesla For years, Tesla has been the undisputed leader in electric vehicles, but BYD is quickly challenging that dominance. In the fourth quarter of 2023, BYD outsold Tesla in battery EVs, and by Q1 2025, it delivered over 416,000 all-electric vehicles, surpassing Tesla's nearly 337,000. This marks the second consecutive quarter that BYD has led globally, signaling a significant shift in the market. BYD's momentum continues as it surpassed a major revenue milestone, reaching over $100 billion in 2024, outpacing Tesla's performance. With full control over its supply chain, from batteries to semiconductors, BYD holds significant pricing power and strong margins. In contrast, Tesla faces challenges with an aging product lineup and slower demand. With projected Q1 net income of $1.3 billion, BYD seems poised to surpass Tesla and reshape the EV landscape. BYD Delivered Strong Q4 Results In Q4 2024, BYD posted a record net income of $2.07 billion, marking a staggering 73% year-over-year jump. The surge was fueled by new energy vehicle (NEV) sales that hit an all-time high, with the company moving 1.52 million units, an impressive 161% increase on a year-over-year basis. This record-breaking performance helped drive revenue to a new peak of $37.89 billion, marking a 53% year-over-year increase. However, alongside these stellar top=line numbers, there were signs of caution. BYD's gross margin in the fourth quarter slipped to 17%, down 4.8% from the third quarter. This decline was partly due to rising operating costs, exacerbated by an adjustment in accounting practices that now includes increased sales expenses. The company expects to report net income of $1.3 billion for Q1 at the midpoint. Analysts Ratings on BYD Stock Analysts are confident in BYD's future growth prospects. Recently, Jefferies reiterated a 'Buy' rating on BYD with a price target of 447 Hong Kong dollars, citing strong Q1 earnings growth of 86%-119% year-over-year. The analysts also highlighted robust NEV sales, cost efficiencies, and rising export volumes. Overall, all 6 Wall Street analysts tracked by Barchart rate BYD a unanimous ' Strong Buy.' The average 12-month price target of $123 suggests more than 40% potential upside from the current price.
Globe and Mail
07-04-2025
- Automotive
- Globe and Mail
Nio Stock (NIO) Plummets as Chinese EV Competition Heats Up
Nio's (NIO) stock has hit turbulent waters, dropping 20.64% year-to-date. The Chinese electric vehicle maker reported a staggering $826.5 million loss from operations for Q4 2024 despite delivering 45% more vehicles compared to the previous year. Adding to investor concerns, Nio recently diluted shareholder value by 5% through the issuance of new shares to raise much-needed capital. Don't Miss Our End of Quarter Offers: Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks. Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter. Financial analysts have grown increasingly skeptical after Nio's latest earnings report. The company's Q1 2025 projections fell below market expectations, with anticipated vehicle deliveries and revenue figures that disappointed investors. While Nio aims to break even by 2026 through aggressive cost-cutting measures, many market watchers remain unconvinced, given the company's widening losses and intense market pressures. Chinese EV Market Competition The challenges facing Nio reflect the broader competitive landscape in China's electric vehicle market. BYD (BYDDY) has emerged as the dominant force, capturing 27% of the Chinese electric vehicle market alone. The pace of innovation is relentless, with new models launching on average every two days. Chinese manufacturers are raising the competitive stakes through remarkable technological advances. BYD recently released its 'God's Eye' advanced self-driving system for free, undermining competitors' plans to generate subscription revenue from similar technology. Other innovations include five-minute battery charging systems and even roof-mounted drones that can launch while vehicles are in motion. Foreign automakers are struggling to keep pace in this hypercompetitive environment. Tesla's (TSLA) market share of battery-only electric vehicle (EV) sales in China decreased from 12% to 7% in early 2025. Overall, foreign carmakers have seen their Chinese market presence hit a record low of 31%, down by one-third since 2020. Several global automotive giants are fighting back through partnerships with Chinese technology companies. BMW has recently announced collaborations with Alibaba (BABA) and Huawei, acknowledging that Chinese-made software may offer its best chance for survival in this market. For Nio and other smaller Chinese EV makers, the path forward appears increasingly challenging. As the founder, William Li, recently told staff, the company is cutting costs across the business as competition intensifies, following reports of a new round of layoffs in Europe. With consolidation looming in the Chinese EV market, manufacturers without cutting-edge 'smart EV' capabilities face stark choices. Analyst Response Mixed Analysts have had a mixed response to the company's recent challenges. Citi's Jeff Chung has adjusted his price target on Nio, reducing it to $8.10 (from $8.90), while maintaining a Buy rating. This adjustment follows expectations of a decline in Nio's Q1 vehicle margin to 11%-12%, attributed to the seasonal downturn in car sales, lower sales of Nio's current models before new launches in Q2, and weaker-than-expected sales of the Onvo model. However, Chung anticipates improved earnings for Nio starting mid-Q2, driven by the launch of several new models in April and May, which should enhance margins due to better economies of scale. On the other hand, Mizuho's Vijay Rakesh has decreased the price target for Nio to $4.20 (from $5) while maintaining a Neutral rating, noting weaker-than-anticipated vehicle deliveries in March, affected by seasonal factors and underperformance in Onvo deliveries. Rakesh considers Nio's shares to be appropriately valued at their current price level despite these challenges. Nio is rated a Hold overall, based on the recent recommendations of 11 analysts. The average price target for NIO stock is $4.93, which represents a potential upside of 42.49% from current levels. See more NIO analyst ratings.
